Maker DAO (MKR)

 

Though the concept was conceived in 2015, the dual-coin MakerDAO stablecoin ecosystem was introduced in 2018 with the Maker (MKR) and DAI tokens working together. The MKR and DAI stablecoin tokens have garnered significant interest from cryptocurrency investors because to their non-custodial stablecoin solutions, despite their relative youth.

The MKR token, which is a utility token used for platform governance, may be more important than the DAI stablecoin, which is the real stablecoin that is correlated 1:1 with the US dollar. 

Being non-custodial is one of the main distinctions between MakerDAO and other stablecoins. Maker's DAI token functions on collateralized debt positions, or CDPs, in contrast to other tokens that could decide to declare their stablecoins non-redeemable for any reason. Users get a piece of the DAI token in exchange for a certain quantity of Ether deposited. In addition to serving as a mechanism for governance, the MKR token keeps the DAI stable.

Despite being relatively young, MakerDAO is a well-liked token because to its innovative stablecoin mechanism. The project does not have a plan. 

As stablecoins gain popularity in 2019 and currencies like Tether face criticism for their business practices, the MakerDAO ecosystem has a potential to succeed as a non-custodial response to market instability.

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